Insuring common property of Homeowners and Residents’ Associations against insured theft and damages is the sole responsibility of the Directors of the Body Corporate.
Damage to common property such as boundary walls, entrance gates, security systems and irrigation systems cost the owners thousands should they have to bear the cost of repairing or replacing the damaged property.
Sectional Title Insurance / Body Corporate Insurance
It is essential for trustees of a body corporate to take out adequate Sectional Title Insurance also known as Body Corporate Insurance. A sectional title owner is not obligated to purchase insurance as it is up to the body corporate to ensure that the association is insured.
This insurance should cover buildings and common property for the replacement of each owners section. A body corporate shouldn’t expect an owner to pay the insurance excess on a claim that is made under the Body Coporate Insurance policy.